Marshalls plc, the Elland, West Yorkshire-based stone and landscaping firm, reported a sharp drop in half-year sales and profit as it suffered from a lacklustre housing market.

The company said revenue for the six months ended 30 June was £306.7 million, down from £354.1 million a year ago, and adjusted operating profit fell 19% to £34 million.

It said its building and roofing products sales fell 5% to 6%, while landscape products fell 19%, although the reduction was partially offset by cost savings from restructuring last year.

Looking forward, the company said it was “cautiously optimistic of a modest recovery in its end markets during the second half of the year predicated on a progressive improvement in the macro-economic environment.” 

Matt Pullen, Chief Executive, said: “The Group has delivered a resilient performance in weak end markets. The result in the first half is encouraging and demonstrates that the strategy of diversification, building on the Group’s historic core Landscape Products business, through the acquisition and improvement of less cyclical businesses in recent years, has resulted in a more balanced Group.”

“Whilst market conditions affected the Landscape Products result, I have a strong view that the segment’s performance can be substantially improved through a number of self-help measures which we are implementing at pace.  I am excited for the segment’s prospects in a market recovery as it will benefit significantly from operational leverage.”